Making that first move to London for work can be a daunting task, and the right balance of location and rental cost can make or break your experience of living in the capital.
It certainly isn’t cheap and the latest research by international rental marketplace Spotahome, has found that the average 22-29-year-old will spend as much as 57% of their net monthly salary on renting. Although that only covers the rental cost of a one-bed apartment!
The capital is by far the most expensive region of the nation in this respect, with the South East ranking second and requiring just 38% of net income for a one-bed property. In contrast, the average 22-29-year-old across Britain as a whole will spend 31% of income on a one-bed apartment. However, if you look to rent in London’s inner boroughs, this cost nearly doubles to 61%.
Boroughs Westminster and Kensington and Chelsea are the most expensive in rental terms, with the average one-bed setting you back £2,176 and £2,062 per month respectively. However, when it comes to the earnings on offer in these boroughs, they aren’t the worst for first-time rental affordability.
This title goes to the London Borough of Hackney. The average one-bed apartment in Hackney will set you back £1,487 in rent each month, while the average net salary for a 22-29-year-old comes in at £2,043. As a result, first time London workers are spending 73% of their earnings on getting by in the borough.
Believe it or not, Lambeth is the next least affordable borough for those starting their London adventure. The borough requires 70% of the average 22-29-year-olds earnings to rent a one-bed apartment each month.
Newham (68%), Haringey (64%), Barking and Dagenham (62%), Westminster (62%), Camden (61%), Brent (61%), Southwark (61%) and Islington (59%) also rank high for first-time rental costs as a percentage of salary.
But it’s not all doom and gloom for first-time renters in London.
Richmond is the best borough to start your London adventure, requiring just 38% of the average salary to put a roof over your head.
Bromley also ranks high requiring just 41% of the average net salary for a one-bed apartment, with Bexley (42%), Havering (44%) and Kingston (45%) also amongst the most affordable.
UK and Ireland Country Manager of Spotahome, Nadia Butt said, “When you first move to London, the chances are you will have to compromise on where you want to live due to cost, and even then you will spend a considerable sum on renting. However, just because you’re starting out on your London adventure, it doesn’t mean you have to plough all of your income into the cost of renting.
“In this respect, Richmond is the best borough for those starting their career with the borough requiring the lowest proportion of salary to rent your first property.
“While you may not be as close to inner London as you might like, the upside is more money in your pocket to enjoy the capital.”